Dillard's (DDS)

Add a New Bulls Reason Company: Dillard's (DDS) Current price: Headline: (100 character max) Analysis: Cancel 100% agree 2 votes edit Reducing Inventory and Cutting Costs Leads to Q1 Profit Top Contributor: Alan Ibrahim | Created when NYSE:DDS was $9.20 | Edit | History Dillard's reported a $7.7 million profit in the first quarter of 2009, which is 185% higher than the $2.7 million gained in the first quarter of 2008. In addition, the profit breaks a three quarter streak of negative profits for the company. The company attributes the profit to inventory reductions and by cutting costs through advertising, payroll, and supplies. (100 character max) Cancel 50% agree 2 votes edit Large cost cuts and strong debt structure combat grim retail environment Top Contributor: Helen Han | Created when NYSE:DDS was $3.75 | Edit | History Although DDS sales and profits have been pummeled by the slow-down in consumer demand for its mid-to-high-end goods during this recession, DDS has implemented large cost-saving measures such as closing 20 under-performing stores in 2008 and cutting 500 jobs, or 0.8% of its workforce. Working capital expenditures are expected to be $50 million less in 2008, and more store closures are expected in 2009. The company also has strong debt structure with ample cash availability, with debt of less than $26 million in the next two years, as of Nov. 15, 2008. Costs cuts and maintained good debt structure allow DDS to improve its performance to shield some of the effect of the economic downturn. [1] (100 character max) Cancel

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